—(1) Where the amount of withdrawals made by an SRS member from his SRS account in any year exceeds the amount he contributed to his SRS account in that year, the excess amount withdrawn from his SRS account shall, subject to subsections (3), (6), (7), (8) and (9), be deemed to be income of the SRS member chargeable to tax under section 10(1)(g).

[24/2001]

(2) Except where a withdrawal is made by the Official Assignee or the trustee in bankruptcy of an SRS member who is a bankrupt or where a withdrawal is made under subsection (3), (4) or (8) or deemed to be withdrawn under subsection (6), (7) or (9), a penalty of 5% of the amount withdrawn which is deemed to be income of an SRS member under subsection (1) shall be payable by the SRS member and shall be deducted by the SRS operator from the amount so withdrawn.

[24/2001]

(2A) The Minister may, for any good cause, remit, wholly or in part, any penalty payable by any SRS member under subsection (2).

[37/2002]

(3) Only 50% of the following withdrawals made by an SRS member from his SRS account shall be deemed to be income of the SRS member chargeable to tax under section 10(1)(g):

(a)

withdrawal of all the funds standing in his SRS account at the same time if the SRS member is neither a citizen of Singapore nor a Singapore permanent resident on the date of the withdrawal and for a continuous period of at least 10 years before that date, and has maintained his SRS account for a period of not less than 10 years from the date of his first contribution to his SRS account;

(b)

any withdrawal on or after the SRS member has attained the prescribed minimum retirement age prevailing at the time when the SRS member made his first contribution to his SRS account; or

(c)

any withdrawal made on the ground that the SRS member is physically or mentally incapacitated from ever continuing in any employment, is mentally disordered and incapable of managing himself or his affairs or is suffering from a terminal illness or disease.

[24/2001; 37/2002; 21/2008; 4/2011]

(3A) Subject to subsection (3C), where an SRS member has used funds in his SRS account for any investment, any payment to the SRS member thereafter, being —

(a)

any gains or profits from the investment made;

(b)

any part of the funds the SRS member invested; or

(c)

any proceeds from the sale or liquidation of such investment,

shall be considered a withdrawal by the SRS member from his SRS account for the purposes of subsections (1), (2) and (3)(b) and (c).

[22/2011]

(3B) Subsection (3A) applies even if the SRS account has been closed before the payment mentioned in that subsection, and in that event the person to whom the payment is made shall be treated as if he is still an SRS member for the purposes of subsections (1), (2), (2A) and (3)(b) and (c).

[22/2011]

(3C) Subsection (3A) does not apply to any payment received after any balance remaining or sum standing in the SRS account is deemed withdrawn under subsection (6), (7) or (9).

[22/2011]

(3D) Where any funds in an SRS account have been used for investment, then all the funds standing in the SRS account shall be considered as having been withdrawn at the same time for the purposes of subsection (3)(a) if, and only if, every investment has either been sold or liquidated, or is one which has been deducted from the balance in the SRS account, and —

(a)

in the case of every investment that has been sold or liquidated, amounts which the financial product provider declared to the SRS member to be all the gains or profits from the investment, all funds used for the investment, and all the proceeds from the sale or liquidation have been returned to the account and these, together with all funds standing in the SRS account, are withdrawn at the same time; and

(b)

in the case of every investment which has been deducted from the balance in the SRS account, the date of the deduction is the same as the date on which the withdrawal referred to in paragraph (a) takes place.

[Act 37 of 2014 wef 01/07/2015]

(3E) Where —

(a)

an SRS member has used funds in his SRS account for any investment; and

(b)

the investment is one which has been deducted from the balance in the SRS account,

then an amount equal to the value of the investment as determined in the manner prescribed by regulations made under subsection (11), shall be considered as having been withdrawn by the SRS member from his SRS account on the date of the deduction for the purposes of subsections (1), (2) and (3).

[Act 37 of 2014 wef 01/07/2015]

(3F) In subsections (3D) and (3E) —

(a)

an investment is one which has been deducted from the balance in an SRS account if the SRS operator in question has, in accordance with the regulations made under subsection (11), approved the deduction of the sums representing the investment from the balance in the SRS account; and

(b)

the date of the deduction is the date of the approval referred to in paragraph (a).

[Act 37 of 2014 wef 01/07/2015]

(4) Where any contribution made by an SRS member in any year to his SRS account exceeds his SRS contribution cap for that year (referred to in this section as excess contribution) —

(a)

the aggregate of the excess contribution and, unless the Comptroller otherwise directs, an amount equal to 5% of the excess contribution, to be compounded yearly in accordance with regulations made under this section; or

(b)

the total amount standing in his SRS account,

whichever amount is the lower, shall be withdrawn by the SRS member from his SRS account by 31st December of the year in which he has been notified by the Comptroller of the excess contribution; and that amount shall be deemed to be his income chargeable to tax under section 10(1)(g) for that year.

[24/2001]

(5) Where an SRS member is eligible to make a withdrawal under subsection (3)(b), all the funds (excluding any life annuity) standing in his SRS account shall be withdrawn not later than 10 years from the date he made his first withdrawal under subsection (3)(b).

[34/2008]

(6) Upon the expiry of the period referred to in subsection (5), any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in the SRS account shall be deemed to be withdrawn by the SRS member and 50% of such balance shall be deemed to be his income chargeable to tax under section 10(1)(g) for the year in which the period expires.

[24/2001; 34/2008]

(6A) Where an SRS member —

(a)

made his first withdrawal under subsection (3)(b); and

(b)

subsequently made one or more contributions to his SRS account during the period from 1st October 2008 to 31st December 2008 (both dates inclusive),

then —

(i)

any withdrawal made under subsection (3)(b) prior to the date of the first of his contributions referred to in paragraph (b) shall be disregarded for the purpose of determining the period referred to in subsection (5); and

(ii)

the date of his first withdrawal made under subsection (3)(b) after the date of the first of his contributions referred to in paragraph (b) shall be deemed to be the date he made his first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5).

[27/2009]

(6B) Where an SRS member —

(a)

had made one or more withdrawals under subsection (3)(b) of all the funds standing in his SRS account and had closed his SRS account (referred to in this subsection as the first SRS account); and

(b)

subsequently opened another SRS account during the period from 1st October 2008 to 31st December 2008 (both dates inclusive) (referred to in this subsection as the second SRS account),

then —

(i)

the reference to the date he made his first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5) shall be read as a reference to the date he makes his first withdrawal after he opened the second SRS account; and

(ii)

for the purposes of subsection (1) and section 39(2)(o), both the first SRS account and the second SRS account shall be deemed to be the same account as if the first SRS account had never been closed.

[27/2009]

(7) Where an SRS member is eligible to make a withdrawal under subsection (3)(c), he shall withdraw all the funds (excluding any life annuity) standing in his SRS account not later than 10 years from the date he makes the first withdrawal; and upon the expiry of that period, any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in his SRS account shall be deemed to be withdrawn by the SRS member and 50% of such balance shall be deemed to be his income chargeable to tax under section 10(1)(g).

[24/2001]

(8) Only 50% of any annuity payment made under a life annuity purchased by an SRS member under the SRS shall be deemed to be income of the SRS member chargeable to tax under section 10(1)(g) upon —

(a)

the expiry of the period referred to in subsection (5);

(b)

the expiry of the period referred to in subsection (7); or

(c)

the closure of his SRS account on or after he has attained the prescribed minimum retirement age prevailing at the time when he made his first contribution to his SRS account.

[24/2001; 34/2008; 4/2011]

(9) Where an SRS member dies, any sum standing in his SRS account shall be deemed to be withdrawn on the date of his death and 50% of the sum shall be deemed to be his income chargeable to tax under section 10(1)(g).

[24/2001]

(10) For the purposes of this section, the use of funds in his SRS account by an SRS member for investment in savings or investment products offered under the SRS and for disbursement of any charges in relation to the operation of his SRS account shall be deemed not to be a withdrawal from his SRS account.

[24/2001]

(11) The Minister may by regulations establish a Supplementary Retirement Scheme to provide for voluntary cash contributions by individuals and by their employers on their behalf to accounts operated by SRS operators so as to encourage individuals to save for their old age.

[24/2001; 34/2008]

(12) Without prejudice to the generality of subsection (11), regulations made under that subsection may provide for —

(a)

the opening and the type of account for any SRS member into which contributions may be made;

(b)

the SRS contribution cap, the mode and manner of the contributions and withdrawals that can be made by any SRS member;

(c)

the method of valuation of investment products acquired under the SRS;

(d)

the method of computing income deemed to accrue from excess contributions made by any SRS member;

(e)

the suspension or closure of SRS accounts and the circumstances in which the SRS accounts may be suspended or closed;

(f)

the terms and conditions governing the relationship between the Government, SRS operators, SRS members and the Comptroller under the SRS;

(g)

the purposes for which the contributions made under the SRS can be utilised and invested, the persons with whom investments may be made and the terms and conditions of the investment and withdrawal under the SRS;

(h)

the consequences for any contravention of the regulations, including making any act or omission in contravention of such regulations an offence and prescribing the penalties for such offence;

(i)

the requirements and obligations to be observed by SRS members, SRS operators and financial product providers under the SRS; and

(j)

generally for giving full effect to or for carrying out the purposes of this section.

[24/2001]

(12A) Without prejudice to the generality of subsections (11) and (12), regulations made under subsection (11) may, for the purposes of subsections (3D), (3E) and (3F) and section 45EA (which relates to collection of tax by an SRS operator for payment to the Comptroller on the value of an investment deducted from an SRS account of a non-citizen) —

(a)

provide for the manner and time of valuation of any investment;

(b)

enable an SRS operator to approve the deduction of the sums representing an investment from the balance in an SRS account under such circumstances as may be specified, and impose duties on the SRS operator before and after giving the approval; and

(c)

for the purposes of section 45EA, prescribe different methods of reckoning the value of an investment under different circumstances.

[Act 37 of 2014 wef 01/07/2015]

(13) This section shall not apply to any SRS member whose SRS account is opened and subsequently closed within the same year.

[24/2001; 27/2009]

(14) In this section, unless the context otherwise requires —

(a)

a reference to an SRS member making a contribution to his SRS account includes his employer making a contribution to that account on his behalf; and

(b)

a reference to a contribution of an SRS member to his SRS account includes a contribution by his employer to that account on his behalf.

[27/2009]

History for Provision
'10L Withdrawals from Supplementary Retirement Scheme'.